Dodge & Cox Fund, an investment management company, released its second-quarter 2026 investor letter for “Dodge and Cox Stock Fund”. A copy of the letter can be downloaded here. Despite volatile oil prices and rising inflation, U.S. equities reached record highs in Q2 2026, driven by a technology-led rally, particularly in memory semiconductors. The Fund’s Class A shares returned 5.57%, underperforming the S&P 500 Index’s 15.20% return and the Russell 1000 Value Index’s 13.84% gain, mainly due to underweighting in Information Technology and weak performances from several holdings. Concerns over AI disruption negatively impacted companies with strong franchises. The Fund’s bottom-up investment approach allowed it to acquire shares in industry leaders with strong long-term fundamentals. The firm believes that increased exposure to high-quality businesses and a diversified portfolio positions the Fund well for future growth. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Dodge and Cox Stock Fund highlighted Thermo Fisher Scientific Inc. (NYSE:TMO) as a newly added position. Thermo Fisher Scientific Inc. (NYSE:TMO) is a life science company focusing on providing life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services. On July 21, 2026, Thermo Fisher Scientific Inc. (NYSE:TMO) closed at $523.46 per share, reflecting a market capitalization of $194.53 billion. Thermo Fisher Scientific Inc. (NYSE:TMO) posted a one-month return of 6.35%, while its shares gained 12.16% over the past 52 weeks.
Dodge and Cox Stock Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q2 2026 investor update:
“During the second quarter, concerns about AI disruption led to declines in a number of companies with strong franchises and solid profitability. Our bottom-up approach led us to establish several new positions in industry leaders whose shares have lagged, and where we believe the long-term fundamentals are not fully reflected in their current prices. We initiated a position in Visa, a leader in global payments, an industry characterized by strong network effects and high barriers to entry.
We also started a position in Thermo Fisher Scientific Inc. (NYSE:TMO), a leading global provider of life sciences tools, scientific instruments, and laboratory products and services. The company’s shares recently declined to their lowest valuation in a decade as the industry navigates cyclical weakness due to customers’ post-COVID inventory destocking. Despite this near-term pressure, Thermo Fisher generates substantial recurring revenues and has a track record of successful acquisitions. We believe the company’s long-term prospects remain attractive and took advantage of the lower share price to establish a position.”
Thermo Fisher Scientific Inc. (NYSE:TMO) ranks 34 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 115 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the first quarter, up from 113 in the previous quarter. While we acknowledge the risk and potential of Thermo Fisher Scientific Inc. (NYSE:TMO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Thermo Fisher Scientific Inc. (NYSE:TMO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Thermo Fisher Scientific Inc. (NYSE:TMO) and shared billionaire Steven Cohen’s top dividend stock picks. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
